After sitting empty for more than a decade, one of Kent Town’s most recognisable historic sites is finally set for a new chapter, with construction to begin soon on a major residential and mixed-use development at the former Royal Hotel.
The project, known as Royal Apartments, will deliver 211 new homes across two residential towers while restoring and preserving the heritage-listed hotel building that has stood vacant for years. The development, led by South Australian family-owned developer Palumbo Group, is positioned on the doorstep of the Adelaide Park Lands and aims to blend heritage character with contemporary apartment living.
Plans include a 15-level Hills Tower and a 16-level City Tower, alongside adaptive reuse of the State Heritage-listed Royal Hotel building, which was added to the State Heritage Register in 1986. The site will also feature ground-level retail, communal open space, and bike parking and 235 on-site car parks.
Premier Peter Malinauskas says, “Our government has some core beliefs when we consider housing growth across Adelaide.”
“We need to build more homes for South Australians at pace. While we’re doing this, we need to find ways to honour and preserve the character and charm that makes our suburbs so special. And key workers deserve a place to live close to where they work.”
“This development ticks all the boxes. The iconic site of the Royal Hotel in Kent Town restored to its former glory. And more critical housing supply – with a focus on key workers – at a sublime location on the doorstep of the Park Lands.”
A key focus of the development is housing supply, particularly for essential workers, with 20 per cent of dwellings to be offered to doctors, nurses, police officers and other key workers at a 25 per cent reduction in rental costs. It is also positioned as an option for downsizers looking for low-maintenance living close to the city, helping free up family homes across Adelaide.
Minister for Housing and Urban Development Nick Champion says, “We do not like seeing land in premium locations across the suburbs laying vacant.”
“Addressing the national housing crisis means building more homes for all South Australians, including key workers and those leaving the family home for apartment living.” Champion credits the Palumbo group for bringing the iconic site to life.
Palumbo Group Managing Director Daniel Palumbo says, “Royal Apartments is a project that truly reflects our long-term commitment to creating places of enduring quality and significance.”
“At Palumbo Group, we are passionate about delivering developments that contribute meaningfully to their surroundings. Royal Apartments has been thoughtfully designed to embrace its parkland setting, celebrate natural light and outlook, and foster a strong sense of community.”
The project follows earlier proposals for the site that did not go ahead. A revised planning application approved in 2025 allowed the development to move forward with additional homes and updated design elements. Construction is now set to bring life back to the long-vacant Kent Town landmark.
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